Why Is It Complex to Implement Cross-Margining across Different Crypto Exchanges?

Implementing cross-margining across different crypto exchanges is complex due to fragmentation, differing legal jurisdictions, and a lack of standardized clearing. Each exchange has its own proprietary margin model, risk parameters, and settlement procedures.

Furthermore, there is a challenge in establishing a single, legally sound master agreement that allows a prime broker to centrally manage and net collateral held across various independent, often unregulated, venues.